" The world could slide into a 1930s-style depression, David Cameron has claimed, as the G20 summit struggled to find common ground on the best way to boost the global economy." (Independent)What Happened in the Great Depression? Well we had a great financial crisis which precipitated a fall in spending and investment. Two years later (1931) we have a new coalition government (dominated by the Conservatives, but, with a progressive leader forced to do U-turns on his fundamental belief's)
On coming to power the Conservative dominated coalition tell everyone that government borrowing is far too high, and we must tackle this deficit to 'save the economy.
The government duly cut unemployment benefits and increased taxes and very nicely helped create a period of deflation, mass unemployment and the longest depression on record.
Of course this time it's different. We have a severe financial crisis (2007) which causes recession and two and half years later a Conservative dominated coalition come along to tackle the budget deficit by slashing spending.